#layer1 #helalabs

Layer 1 refers to the base layer or the main blockchain architecture upon which various decentralized applications (dApps) and protocols are built. This foundational layer includes well-known blockchains like Bitcoin, Ethereum, and Hela Labs. These blockchains are responsible for the core functionalities such as transaction processing, consensus mechanisms, and the establishment of security protocols. Layer 1 operates through its native protocol and manages the network’s transaction finality and data storage.

The primary operation of Layer 1 involves maintaining the blockchain’s ledger, where all transactions are recorded immutably. This is achieved through consensus algorithms like Proof of Work (PoW), Proof of Stake (PoS), and their variations. For instance, Bitcoin employs PoW, requiring miners to solve complex cryptographic puzzles to validate transactions and secure the network. Ethereum, transitioning to PoS with Ethereum 2.0, uses validators who stake their cryptocurrency to propose and validate new blocks, enhancing scalability and energy efficiency.

Moreover, Layer 1 blockchains often have native tokens, such as BTC for Bitcoin and HLUSD for Hela, which incentivize network participants and facilitate transactions. Scalability, security, and decentralization, known as the blockchain trilemma, are critical challenges for Layer 1 solutions. Innovations like sharding, which breaks the blockchain into smaller, manageable pieces, and layer 1 upgrades aim to address these challenges, ensuring robust and scalable blockchain ecosystems.